2nd card

Gemmzie

I have an IF Card (from Halifax) with a limit of £600

I have had several offers of the high-rate cards which I've ignored, but have now had one from MBNA re-considering their offer and offering 15.9% typical


Their BT are 0% until Sep 2007 but is their fee charged as a purchase meaning that it will sit and accrue interest until September until I can pay it off?


Just wondering as I want to buy my car insurance on another card, and then move it to my IF card which is 4.95% for the life of balance.

happyformonths

Hi Gemmzie,

You could ring MBNA and ask them. MBNA run the Virgin card and I specifically asked them about this issue as I've been stung by Egg on it. On the Virgin card, they don't treat the BT fee as a purchase, and it's paid off with your first payment. Check with them though, as not all their cards will be the same. (You could pressure them by saying you know what they do for their Virgin card customers!)

Anyway, even if it does get treated as a purchase, let's say their fee is 2% (£12, if you're transferring £600) or, more likely, a minimum charge of £35. The interest on your £35 "purchase" over a year at 15.9% is roughly £5.57 (I say roughly because I can't do that compound interest calculation! But it wouldn't be much more than that) - so for a year, that's not too bad.

Hmm, re-reading your post, I'm not sure I've understood exactly what you want to do with the car insurance, IF card, MBNA card and "other" card (is this a 3rd card or are you talking about the MBNA one?)... maybe you could spell it out for me?

Hope this helps anyway.

HFM

Gemmzie

Sorry, the "another card" would be the MBNA card, then it could be 0% until next Sep or could be moved to the IF card at 4.95% avoiding fees

But if it would be around £40 then it seems worth it. Thanks